QuestionsQuestions (PRESIDENTIAL DECREE NO. 508)
PD 508 provides guidelines for the development and utilization of small or sub-commercial deposits of natural marsh gas or methane gas in the Philippines and grants “gratuitous permits” to encourage such development and regulate it.
All small or sub-commercial natural marsh gas or methane gas deposits found in public or private lands not exceeding 1000 feet in depth and not associated with crude oil, within territorial limits of the Philippines, and located in “free areas,” national reserve areas, or other areas not covered by valid and subsisting petroleum exploration/exploitation concessions or by service contracts under PD 87.
For household use or for small-scale industrial development.
Any Filipino citizen of legal age with capacity to contract and not convicted of any offense involving moral turpitude; or an association/partnership/corporation duly organized under Philippine law with at least 60% of its capital at all times owned by Filipino citizens.
Free areas are all lands within Philippine territorial limits excluding those submerged beneath bays, lakes, rivers, or lagoons, and excluding lands within or including national reserve areas, petroleum reservations, or areas covered by valid existing exploration/exploitation concessions, petroleum drilling leases under Act No. 2932, or petroleum mining claims under the Act of Congress of July 1, 1902, as amended.
Areas included in a petroleum exploration/exploitation concession but later given up voluntarily or due to requirements of the Petroleum Act of 1949; areas covered by concessions that expired or were cancelled; or areas in excess of the maximum areas allowed for such concessions.
It must be filed with the Director of Mines, Manila, with a filing fee of P20.00.
Not more than 20 hectares, in a block rectangular in shape, with the larger sides not more than five times the shorter sides.
A permit area may be validly covered by a subsequent petroleum exploration concession or a PD 87 service contract; however, no gratuitous permit shall be issued on an area already covered by an existing permit or lease under RA 5092 (subject to the rules of that law), and no permit may be issued if the deposits are more than 1000 feet deep or associated with crude oil.
A permittee shall in no case be entitled to more than one (1) permit for every petroleum region at any one time.
The permittee may apply for permission to enter, and upon posting such bond as may be fixed by the Director of Mines, an order allowing entry shall be issued pending final determination of the proper amount to be paid to the landowner or occupant.
The permittee must submit monthly operations to the Director of Mines for record and information.
The permit term is two (2) years from issuance, renewable for another like period upon compliance. If production is attained within four (4) years, it may be extended for additional series of two (2) years each, but not to exceed a total of fourteen (14) years.
Failure to conduct operations on the area within one (1) year is a cause for cancellation.
The Director of Mines is authorized to assume jurisdiction and is charged with carrying out the guidelines so that utilization and development are properly encouraged and regulated. He prescribes the terms and conditions and the necessary application forms.
It is a light, odorless, colorless, inflammable gaseous hydrocarbon occurring naturally as a product of decomposition or organic matter in marshes and mines.